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Fibonacci fans and arcs are technical tools that apply Fibonacci ratios diagonally and radially rather than as flat horizontal lines. A Fibonacci fan draws trendlines from a swing point through the 38.2%, 50%, and 61.8% levels to project dynamic, sloping support and resistance. Fibonacci arcs draw curved lines around a swing point, showing potential reaction zones based on both price and time. Both indicate probable zones, not guaranteed levels.

Both start from a chosen swing high and low, but they project differently. A Fibonacci fan produces straight diagonal trendlines that act as sloping support or resistance, adjusting with the trend over time. Fibonacci arcs are half-circles radiating from a swing point, so they factor in both price and elapsed time, curving toward or away from price. Fans emphasise trend direction; arcs emphasise price-plus-time reaction zones.

Select a significant swing low and swing high in an uptrend, or a swing high and swing low in a downtrend. The Fibonacci Fan tool uses these points to establish a base trendline and projects diagonal lines based on key Fibonacci ratios, such as 38.2%, 50%, and 61.8%.

On the WRPro platform, select the Fibonacci Fan tool and drag it between the two chosen swing points. The fan lines will then appear automatically. For more meaningful projections, use clear and well-defined swing points that represent significant market movements rather than short-term price fluctuations.

Traders use Fibonacci arcs to identify potential areas where price may react based on the relationship between price and time. As price approaches an arc, traders may watch for a bounce, stall, or breakout, often around the 38.2%, 50%, and 61.8% curves. Arcs are typically used alongside other technical analysis tools for confirmation. Because their placement can be affected by chart scaling and the swing points selected, results may vary. Fibonacci arcs indicate potential reaction zones and are not guaranteed signals or outcomes.

Fibonacci fans and arcs can help identify potential dynamic support and resistance zones, but they should not be used as standalone trading signals. Their placement depends on the swing points selected and, in the case of arcs, the chart’s scaling, so different setups can produce different results. Many traders use them alongside price action, trendlines, or other technical indicators for additional confirmation. As with all technical analysis tools, Fibonacci fans and arcs indicate possible reaction zones rather than certainties, and leveraged CFD trading carries a high risk of loss.

Horizontal retracements suit markets moving mostly sideways within a range, while Fibonacci fans suit trending markets because their diagonal lines track the trend’s slope over time. If you want support and resistance that adjusts as the trend progresses, a fan can be more informative. Many traders use both, comparing where fan lines and horizontal retracements overlap to find stronger, potential reaction zones.